Moores Rowland

Budget 2025: Key Highlights for businesses and individuals

Explore the Budget 2025 summary, highlighting key areas such as economic growth, tax reforms, government expenditure, and revenue projections. Stay informed about strategic investments and financial outlooks shaping the future.

February 2025

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Key Highlights

Economic Overview

  • The government has allocated a record S$143.1 billion for the fiscal year, focusing on sustaining economic growth projected between 1.0% and 3.0% for 2025, following a 4.4% expansion in 2024.

  • A significant portion of this budget is dedicated to technology and innovation, with an additional S$3 billion injected into the National Productivity Fund to enhance competitiveness in sectors like artificial intelligence and quantum computing. 

  • Furthermore, S$1 billion is earmarked for research and development infrastructure, including a new national semiconductor R&D fabrication facility.

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Breakdown of Total Expenditure by Sector in FY2024

Key Measures

Business Overview

  • Workforce and SME Support: A S$1 billion Private Credit Growth Fund and an additional S$200 million to NTUC’s Company Training Committee (CTC) Grant. A new SkillsFuture Workforce Development Grant offers up to 70% funding for job redesign activities.

  • Corporate Tax Rebate: A 50% corporate income tax rebate, capped at S$40,000 per company, with a minimum benefit of S$2,000 for companies employing at least one local worker in 2024.

  • Technology and AI Investment: Allocation of S$150 million for the Enterprise Compute Initiative to help SMEs adopt AI tools and advanced digital technologies.

  • Raise co-funding levels for PWCS: The Progressive Wage Credit Scheme (PWCS) will see raised co-funding levels in 2025 and 2026 to support businesses in increasing wages for lower-income workers.

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Key Highlights

Individual Overview

  • Personal Income Tax Rebate: A personal income tax rebate of up to 60% of tax payable, capped at S$200, will be granted to Singaporean residents for the Year of Assessment 2025.

  • Increase in CPF Contribution Rates for Senior Workers: CPF contribution rates for those aged above 55 to 65 will be increased by 1.5 percentage points starting from January 1, 2025. 

  • Expansion of the Matched Retirement Savings Scheme (MRSS): Starting January 1, 2025, the MRSS will be expanded to include Singaporeans with disabilities of all ages. Additionally, the matching grant cap will be increased to S$2,000 per year. 

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Age Group (Years) Employer Contribution Employee Contribution Total Contribution
Above 55 to 60
15.5% (+0.5%)
17% (+1%)
32.5% (+1.5%)
Above 60 to 65
12% (+0.5%)
11.5% (+1%)
23.5% (+1.5%)